In the general aspect of organizational management, the leaders and concerned authorities of each organization develop effective means of maximizing and properly allocating the important resources and elements existing in an organization for the benefit of the group. In this aspect, leaders aim to critically analyze and understand the processes involved in the organizational structure, the aims and pursuits of the group, the required costs and the available resources, and the issues in the organization’s pursuit of achieving their common interest.
In particular to this concern is the development of an effective and efficient budget allocation in terms of the production process of the organization. In this aspect, managers aim to develop an organized and realistic budget to govern the processes of the group for the aim of maximizing their capital and resources towards the achievement of their common goal. In the actual application of budget management, different approaches and strategies are used based specifically on the concern and characteristic of the organization and the process on which it will be applied on.
Indeed, each budget target specific issues and concern on the organization on particular perspective such as on the micro, mezzo, or macro level. However, considering the actual application of these budget system, certain organization issues and concepts often hinder this pursuit namely on the political concern. One of which is the actual impact of constrain and limitations in the expenditure and use of resources in the budget to incorporate actual figures. In relation to this issue is the accuracy of the budget projection on the organization on which, certain aspects and field tend to be inconsistent on the concern of the budget.
Another large factor also in the application of budget is the impact of the political framework already existing inside the organization. In actual view, the framework of the organization is largely based on political concepts on which, budget adjustments and changes will result significant reaction from this ground. Often, political parties inside the organization tend to react against the proposal as they view this concern to be unjustified and unequal to the general concern.
In particular also to this is the impact of the budget allotment to the higher management in which they must also similarly comply with as part of the organization. Another is that other group in terms of political segregation can postulate underlying reasons for the budget application, which are significantly detrimental to the ideal concern of the budget management. Indeed, among also the important concern in the actual application of budget management are the factors of the views, interpretation, and understanding of the organization towards its concern, which are influential to the practice and adherence to the budget, implemented.
Courtney from Study Moose
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